coming up on our t.v. a new leak from edward snowden reveals more about the n.s.a. surveillance program the u.s. agency is tracking billions of cell phones around the globe a day tell you more just ahead even california police officers face charges over the death of a local homeless man video shows kelly thomas being beaten in taiz by the officers before his death an update on this case and a look at police brutality here in the us ahead and at the air force academy in colorado cadets take a pledge to never lie but investigative journalist says he's uncovered information that some recruits are asked to not only lie but also spy on classmates professors and commanders will speak to that journalist coming out.

it's wednesday december fourth eight pm in washington d.c. i'm sam sax and you're watching r.t. and we begin with a developing story as yet another n.s.a. bulk data collection program has been revealed based on interviews and documents obtained from edward snowden the washington post reports that the n.s.a. is tracking cell phone locations all around the world collecting nearly five billion records every single day and information is stored in a vast database that is able to track the location of hundreds of millions of devices in the people who use them and develop complex relationship maps of who's interacting with who and just where they're interacting based on this data agency officials say this program by design does not target americans but as we've learned with other n.s.a. bulk collection programs americans data is. often incidentally swept up into these

databases as are the locations of tens of millions of americans who travel abroad every year and use their cell phones and when recent months senators like ron wyden have pressed the n.s.a. on whether or not they are conducting a program using cell site location data within the united states and the n.s.a. has denied that such a program currently exists operative word there currently. but this latest leak exposes such a program existing on a global scale with enormous capabilities where an analyst can locate any cell phone in the world and retrace the movements of that device and its owner tracking him or her as they move about to work or to their private home or to a private meeting according to n.s.a. documents the amount of data flowing into their databases as a result of this program is outpacing the agency's ability to ingest process and store it as for the implications of this latest leak it shows that efforts to keep

phone communications a secret by using things like disposable phones or leaving your phones turned off don't work given the n.s.a.'s capabilities in fact this newly revealed program is designed to specifically sniff out devices that appear to be trying to remain hidden. but we're going to california where the trial continues for two police officers facing charges for the two thousand and eleven beating death of kelly thomas this man seen here thomas mentally ill and homeless was confronted by police officers on the night of july fifth two thousand and eleven is not guilty of any sort of crime officers were responding to a call about a man juggling car door handles in a bus depot parking lot but what followed was a brutal beating at the hands of six fullerton officers beating was largely captured on video there it is throughout you can hear thomas calling out to his father calling for help saying the officers are killing him and thomas died five

days later in a hospital after his taken off life support this video that you're seeing is now the primary evidence in use against two former officers who are now facing charges from this beating death meanwhile ramos is charged with second degree murder and involuntary manslaughter and former corporal jay kitchen ellie is facing one count of involuntary manslaughter and one count of use of excessive force. third officer joseph wolf is charged with involuntary manslaughter he'll be tried in a separate trial now this trial is expected to last weeks and it's a trial of particular importance we've seen some troubling reports of police brutality emerge all around the country there is to paris williams a twenty year old in san francisco who was stopped by police for riding his bike on the sidewalk on nov fifteenth the altercation quickly turned violent vicious video to show williams and three others were arrested there williams and his supporters

say that it was the police who made the situation hostile williams went to the hospital to jail for three days charges against williams though were later dropped at san francisco police maintain they have the right to defend themselves and no officers have been charged with wrongdoing here. or look at lucinda white and woman in springfield illinois who was tasered by police while eight months pregnant this april and it was like who called the police in the first place after a fender bender springfield police here to stand by their actions and there's been no charges against the officers in this case either. and you might remember this video of dwight harris the man in the wheelchair there getting forcefully tackled by two washington d.c. metro policemen in the spring of two thousand and eleven police said harris was drinking in public though those charges against harris were dropped shortly after this video was released and while harris alleges that police used excessive force and that he required stitches on his head the police were not charged and they kept

their jobs. unfortunately these examples can just go on and on and on but on like in any of those cases i just mentioned in the case of kelly thomas the officers are actually facing charges police brutality is actually receiving one of those rare days in court and thus we should all pay close attention to this case. as they on the issue of police officers are increasingly being outfitted with tiny cameras known as lipstick cameras that record everything the officer sees and deals with during his or her shift some say this technology offers unprecedented accountability on the part of police by making sure everything they do is recorded but this also has privacy advocates raising concerns artie's amir david as more. for every officer in laurel maryland police department the day starts and ends right here we each grab

a camera and as you can see here it clips on the side of my glasses or a headband or there's different mounts that way it's commonly referred to as the lipstick camera with its shape and size resembling that of the women's popular makeup of the gadget is far from just an aesthetic pleasure it's the latest technology being implemented into police departments across the country allowing for officers to record interactions from a rare vantage point it just gives a completely unbiased view of the situation it doesn't it can't be slanted one way or the other. stories more you just saw the records everything they see everything the police the citizen interaction from traffic stops like this one simple bystander asking for directions so the question is where does all the recorded footage go while that laurel's police department officers show me just how it's done it all runs through a secure online server that officers can then access through an app on their

smartphone but the main server for the thousands of police interactions that happen daily is right here on a stored web site called evidence dot com this is where officers can log in and view their captured footage and even though they can see the video the police department says officers cannot tamper with it they cannot alter they cannot delete they cannot change they cannot they they have no it's a view only for them at one hundred eighty one days tazer notifies us as administrators that they're going to ready to purge the system one hundred eighty days that's the policy for how long video can be stored on the server before it's automatically purged but well police officers seem to be playing by the rules privacy advocate that the a.c.l.u. say that the implementation of these cameras has presented conflicting viewpoints on the one hand. they are cameras there more cameras in more public spaces which is a trend that we've been generally fighting and there are cameras run by the police

on the other hand we've seen a lot of situations in which these cameras on the bodies of police act as a very effective check and balance against police abuses check and balance indeed in reality the california police conducted a randomized controlled study after cameras were introduced in february of two thousand and twelve public complaints against officers plunged eighty eight percent compared with the previous twelve months and as for the officers use of force that fell by sixty percent but the a.c.l.u. and other privacy advocates are still concerned over the power police officers have to turn their camera on and off perhaps then failing to capture behavior that they don't want tate is to are going to have an incentive to be dishonest about certain things and the cameras help keep them honest but they could design a system where the number was privacy advocates are demanding that police departments implement airtight policies so that people don't have to depend on the

honesty of police officers it's only then they say that this could be a force for good allowing citizens to make sure their law enforcement is following the law in washington david our team right now joining me for more on this is our cheese a very dated welcome so. we see that these cameras these lipstick cameras that are outfit on police are being used by more and more police departments around the country what do you think's behind this kind of explosion in their use they certainly are exploding they're everywhere now where there are number of reasons they are very beneficial to the police officers you have to remember that this footage that's recorded on these cameras is basically hard evidence that means that if someone were to file a complaint against a police officer say they're saying the police acted aggressively or the police abuse them and they would have you know they would have video they could. automatically refute that complaint so they could take that footage put it on a cd easily take it over to the court show the judge and say here it is right here

it didn't happen so it makes court testifying much easier it's also proven to deescalate a lot of situations now either that's because you know people see the officer wearing the camera and then they decide to calm down a little bit and maybe sort of back off from the situation or it's because a police officer knows that they're being recorded and so they sort of decide not to resort to you know using force or even lethal force for that matter what are. there exactly so there you have it. you know we sold during the occupy movement we've seen in the last few years everybody has a phone with a camera on it and during the occupy movement we saw lots of people using their phone to record cops and we've seen since then more and more cases where people are reporting a record of the cops do you think that's influenced the police decision to use these cameras so that there's not only one side recording them that footage could be up to make a cup look bad so the cop now has his footage too to record what he's doing while the police department says of course it's not a direct response to that but it's kind of apparent that that's what's going on the

police chief says that that has definitely become an issue and i think that's the reason why they like the idea of being able to give their perspective i spoke to the chief of police and this is what he had to say about it. we're constantly under video surveillance we're being recorded on a regular basis whether it's cell phones whether it's personal well cams whatever the technology is there in the community this is a benefit for us because as opposed to twenty second clip being broadcast by the media when the incident in the entirety in its entirety thereby we can rebut any of the negative spins are placed on the video that's released by the media let's talk about the privacy concerns here because we have officers walking around doing their job with this camera on them and they're just recording everything they see people could just interact with a police officer but not want to be recorded with a certain i mean there are a lot of people that just by hearing it alone they're sort of up in arms about it but you know what legally speaking the recording is totally fair game where i was

in the state of maryland it's actually all party consent states and means all parties have to be onboard with the recording even if one person wants to record however the loophole to that is public space so any time you're you know due at a traffic stop asking for directions anything anywhere you are on public property that's all fair game but once of course they go into a private business or residence they have to ask for consent from the people recording and then they have the right to refuse it interestingly the a.c.l.u. is behind this because it adds accountability to the police officers but there's also this wrinkle that the officers can talk to when the camera goes on and off meaning they could turn it off if they were turned off and do something bad assumingly you what does that mean you just said it on the head i mean just to be clear they cannot do post editing so they can't cut parts out they can't believe anything but it is up to them it's on their discretion of course police departments will tell them you need to put it on any time you have

a citizen police interaction but you know you could have incident where the police officer knows that he or she is not going to be doing something that would be deemed appropriate by the public might decide not to put it on and then say either i forgot to or i didn't have time to or it didn't work so that's a real concern and that's why a.c.l.u. the a.c.l.u. and privacy advocates say there need to be real good policies in place interesting stuff artie's amir david thank you you thank. court proceedings at the nation's largest federal court of appeals are about to significantly change the ninth circuit u.s. court of appeals headquartered in san francisco covers district courts in california alaska arizona plus several other states out west and this week that court announced that it will be live streaming some of its hearings over the internet so this will be the first time ever the video a federal appellate court hearings will be broadcasted live the court has picked five cases between december ninth of december eleventh that will be the first to be

live streamed the first is a case concerning a california law that requires police to collect the d.n.a. of any adult arrested for a felony the chief justice of the ninth circuit alex kozinski said about the decision video streaming is a way to open the court stores even wider so that more people can see and hear what transpires in the courtroom particularly in regard to some of our most important cases so stay tuned for some must see legal t.v. coming out of the west coast. and now to a story of spying and deception emerging from the u.s. air force academy according the information obtained by the colorado springs gazette the air force's office of special investigations or the o.s.i. was running a secret program in which cadets were forced to spy on their classmates to catch aspected drug users and sex offenders the cadets who acted as informants were encouraged to deceive their classmates their professors and their commanders while taking photos wearing recording devices and filing secret reports and according to

that is that this is something many cadets were bullied into doing it says the records show a side uses f.b.i. style tactics to create informants agents interrogate cadets for hours without offering access to a lawyer threaten them with prosecution then coerce them into helping o.s.i. in exchange for promises of leniency they don't always keep one of those can debt to his heir thomas who claims he was recruited into the program in two thousand and ten. where he is centrally became a spy for the o.s.i. and secured several convict several drug and sexual assault convictions against his fellow cadets eventually though thomas himself was kicked out of the program window aside determined he quote no longer had access to targets and documents obtained via a freedom of information act requests confirm thomas's story. given thomas' history of dealing with infractions as a spy for the u.s. side he himself had racked up enough to merits to be kicked out of the air force

two and he was in two thousand and twelve just six months before graduating he thought the u.s. i would defend him at his hearing but instead he was left hanging in the air force denied such a program existed but earlier i spoke with the investigative reporter at the colorado springs because that who broke this story dave phillips and i first asked if the air force is still sticking to its denial now that this story has been broken open. no i think they just came out yesterday and said yes we used this program although they wouldn't say how much or give any details but they said you know if it works we're allowed to use it and they defended it so one of the things that really struck me about it that using informants at the air force academy is the academy takes its honor code varies hugely day. require cadet never to lie in fact if you get caught lying you get kicked out for one and. but at the same time this program pretty much requires some cadets to lie

and i tried to get them to speak about that even contradiction and so far no one really discussed it with me or we're learning of this through the case of eric thomas who claims he has evidence that you presented that shows that he was working within this program he was spying on his fellow cadets securing numerous convictions in the process before he himself was kicked out of the air force and he was recruited after he got in trouble does as far as you know does this program with a. target people who are already in trouble have they ever picked up any clean cadets and asked them to join the program well we know about what could that they have contact with that very very limited. but generally speaking how these programs work in these programs are they are used in other places not just at the air force i'll go using them in colleges it is extremely rare what we know is that yeah you might get. picked up for some sort of small misconduct and then law enforcement would try

and love leverage that they love will make this go away if you work for us now generally within the f.b.i. or with them on force and they can change small time people to try to get bigger people see get the drug users so you can chime learned that drug dealer is or something like that in that case the academy that didn't necessarily seem to have an it seemed as if when they created informants they were looking for any kind of misconduct no matter how small. what happens to other o.s.i. informants thomas was kicked out here do you spoken with four other former and informants they provided some statements to you in this piece it's almost as though once you get recruited into this program you're on your way out of the air force you're going to be kicked out eventually when you no longer use to rat out your fellow cadets is that kind of the way this works. you know honestly we don't know

how it works what we do know is we have a few you know a very limited number of example within those examples. three of the five i know of were kicked out. for. their acts. one. went on a sort of dropped out of the program became an officer want nothing to do with it another went and worked for i now work for o.s.i. so i think there's a range of things that can happen but it's there's a lot of risks involved when you're an informant by nature you're running with a bad rap a lot of unintended things can happen and so i wouldn't be surprised if it's. typical out of combat that these guys get into more trouble and are eventually. you brought up in your story kind of a back story in the air force in which they were dealing with all these allegations of drug use in the early to thousands which might have been the nexus of this the

origin of this sort of informant program out of the o.s.i. . as far as you can tell is this exclusive to the air force can we assume that other branch of the military have similar programs in place as well. well it's actually a tricky question so yesterday i got statements from both the army and the navy saying that they do not have programs of this time. the question is are they telling the truth i imagine if i had asked that that question to the air force you know a month ago their response would have been the same so officially no there's no other programs like that on officially i'm not sure what happens to eric thomas now your article has kind of dragged this program into the light as you said the air force is now fessing up that this does this program actually existed have many of these new documents that you received through foyer question everything can they allowed thomas to have any recourse to what happened to him. well whatever thomas wanted just to get his diploma from the academy and get his off their commission and have

a career in the air force he said that all these really ever wanted to do. will that happen now that all this is come out as it is totally unclear right now the air force is response to our authority and to say. that that cadet thomas was a kid at with a long history of misconduct that all of his misconduct happened before he was an informant and that therefore they were totally justified in what they did now my reporting i believe contradicts what they're saying. right now they're they're not conceding any of those points there will be interesting to see what more comes out of this reporting here dave phillips investigative reporter at the gazette thank you so much thanks for having me now to pakistan where blowback from the u.s. drone war has crippled an important supply route used by the united states and nato to transport supplies in out of afghanistan that supply route running through

a province in northern pakistan has been blocked since the end of november by protesters demanding an end to the continuing drone strikes in pakistan a former cricket player turned politician imran khan says his political party is responsible for blocking the supply route one of two routes that run through pakistan and he says his party may block the second route as well again to protest drone strikes in response to the disruption a spokesperson for the pentagon said this week that the us military is halting cargo shipments out of afghanistan through pakistan out of concern for drivers on these routes and while the pentagon hopes the supply route will be reopened in the near future they're in the process of read iraq to supply lines by bypassing pakistan the pakistani government which has been both publicly criticizing the drone strikes and privately supporting them claims to be committed to reopening the supply line. so is a cutting edge medical science or one giant scam that's the question surrounding

genetic testing company twenty three inmates for ninety nine dollars twenty three and me send you a personalized d.n.a. kit which allows customers to take a swab of their own saliva. send the kid back to the company where tests are and discover if any judge a genetic disorders and future health risks that the customer may have sounds kind of cool right well twenty three and me has just been hit with a class action lawsuit alleging that the company's test results are bunk that they are meaningless and i believe that the lawsuit says the twenty three and me is actually compiling their customer's genetic information into large databases eventually marketing that data to scientists for research the company says it won't comment on legal matters though it has pulled its advertisements off the air. well we've heard it before a state or province wants to break free and secede from the nation like texas or quebec tonight's resident looks at a baton rouge louisiana where little municipalities want to break free and start their own city called st george.

there's a lot of talk about the fashion around the u.s. these days the latest comes out of baton rouge louisiana residents of the city's southern unincorporated municipalities want to break away from baton rouge to form their own city called same dillard's because they are fed up to have it it started out as an effort to create a new school district say george organizes for sit in their kids being in the school district where kids recently knocked out a bus driver's team when advocates couldn't get their own school district that's only got the idea to just say how all of this and form their own used city entirely

the problem is that baton rouge has spent a bunch of money is pissing up the would be city of st george and st george wants to take some of the things. best schools and highest revenue generating shopping areas away with them so if st george were to become a city they'd be taking about thirty percent of the city's money and the best schools and many say that would have a bankrupt a catastrophic effect on the city so organizers behind forming saint george say they just want to have their kids go to better schools but they want to take the good schools with them and a huge chunk of the city's income and squirrel the rest of this lady that sounds like it might be a bad deal right it doesn't add up what's missing from the equation are these numbers seventy percent of st george's one hundred seven thousand people would be white with an average household income of around ninety thousand dollars to fifty five percent of the remaining baton rouge's two hundred thirty thousand people

would be black with a much lower household and go in other words very clearly they georgia would be much wider and much richer also up until very recently baton rouge had its schools controlled by the federal courts because their schools were too segregated this is a city that had the nation's longest running school desegregation lawsuit ever this is the deep south city with a recent history of keeping blacks and whites separate. so if there's any reason to be fed up in this story it's because it's just another example of jerks in this country trying to take more for themselves and screw everyone else it's the kind of mine mine mine mentality that makes some people want to knock other people's teeth out tonight let's talk about that by following me on twitter at the resident.

foreign legion at the u.s. state department. sure knows how to party turns out earlier this year in september just as the fiscal year was ending the state department spent about one hundred eighty thousand dollars to stock up on alcohol and embassies around the world that included more than ten thousand bucks in wine and whiskey in rio more than twenty two thousand dollars in wine at tokyo plus nearly sixteen thousand dollars in booze in moscow now it's not all that unusual for the state department to purchase copious amounts of alcohol they do do a lot of entertaining around the world and after all diplomacy can often be lubricated better buy booze but one thing to note is the alcohol consumption is increasing dramatically from year to year this year the state department spent more than four hundred thousand dollars on al call that's more than three times the entire tab from two thousand and eight of course given the diplomatic fire started

by edward snowden's n.s.a. revelations this year perhaps a little alcohol diplomacy or alcohol therapy is what's really needed and that does it for now for more of the stories we covered go to youtube dot com slash r t america or check out our web site r t v dot com slash usa you can follow me on twitter at sam sachs and don't forget to tune in at nine pm for larry king now tonight's guest is the actor misha collins one of the stars of the c.w. t.v. series supernatural we'll talk about the show's cult following share stories on what happen to be on the scenes and much much war you don't want to miss it till then take it easy.

look if it was a problem very hard to make a plan to get along here a lot of that had sat with her great care playing little. ole boy. lived the american

. play. well i'm. a. hello there i'm marinated this is boom bust in here the stories we're tracking for you today. first up where have all the banks gone well according to statistics from the f.d.i.c the way the dinosaur will tell you about it coming right up and also a columnist and former treasury secretary paul craig roberts joins me today to

discuss all things bad policy related and later on as is and i discussed high net worth practice of her diction shopping her story it's in today's big deal you won't want to miss any of it and it all starts right now. they're our lead story today detroit now the insolvent city can now proceed with bankruptcy after a judge ruled on tuesday that the city is eligible to file making detroit the largest municipal bankruptcy in u.s. history now u.s. bankruptcy judge steven rhodes read the ninety minute reports from his one hundred

forty page ruling before issuing the court's decision in his ruling he listed the city's litany of financial woes including the loss of manufacturing jobs and population in recent decades now the long awaited decision sets up a bitter battle between the city's financial officials and its unions creditors and retirees who are expecting deep cuts in pensions as part of the chapter nine process sales of treasured city assets such as its art collection will be up for auction. elsewhere the overall number of banking institutions in the u.s. has dwindled to the lowest levels since the great depression low interest rates a sluggish economy and heightened regulations have all taken their toll on the banking sector now the decline in banking numbers has come entirely in the form of big exiting banks with less than one hundred million dollars in assets left on their books and the bulk of those departures occurred between one thousand nine hundred four and two thousand and eleven now f.d.i.c data shows that more than ten

thousand banks left the industry during this period as the result of mergers and consolidations while about seventeen percent of the banks collapsed all together now the number of federally insured institutions nationwide shrank to six thousand eight hundred ninety one in the third quarter now that's falling below the seven thousand number that it was for the first time since the federal regulation began keeping track in one nine hundred thirty four that's a long time now the number of physical bank branches in the u.s. is also shrinking from the end of two thousand and nine through june thirtieth of this year the total number of branches dropped three point two percent according to a. and room of a big coin there's a new crypto currency on the block and it's slimmer and more supple than ever before welcome light now created by a former google employee an mit graduate charlie levy like cohen was built to correct some a big as minor flaws and can best be described as silver to big coins gold is more abundant than big coin and like coin has grown by over four hundred

percent in value since last week alone just last week now while the total market saturation for only ever be twenty one million coins like coin has a fixed point at eighty four million coins now this keeps the price lower than that of decline but it isn't guaranteed against price inflation down the line like corn is also designed to be to generate more by using computer memory rather than processing power which is what big news is and this discourages people from the digital arms race to generate. and finally china mobile it's the world's largest wireless carrier and it's taking preorders for the i phone according to fortune's philip de witt this screengrab right here is in i phone preorder now was taken from a website registered as a subsidiary of china mobile in shoes to choose who is a city just west of shanghai and has over five million people living there it's also one of the richest cities in china making i phones more appealing to the market there as well and china mobile has over seven hundred million subscribers

it's quite a few. well there you have of those there have lives for today as always we'll be tracking these stories and keeping you posted on all the latest. joining me now is economist journalist author and former assistant treasury secretary mr paul craig roberts mr roberts how are you doing today i'm just going to you're going to now i want to start off by asking you it was recently announced that timothy geithner former secretary of the treasury and new york fed president he's moving to a lucrative job at private equity firm warburg pincus is this move unexpected you know of course not. the bank should always take care of those and sure. now during gardner's time at the treasury he went to great lengths to let people know that he was a life long civil servant i have covered during the financial crisis do you think

that he ultimately serve the interests of the bank more than you know the interests of that would be serve being a true civil servant or sure that's the direction the federal reserve which serves the interest of the banks and in recent years that's been fortune all the treasury it's now that the function of the financial regulatory. they all. function now since the beginning of the fed itself there's been a revolving door between wall street and the lender of last resort now even paul warburg advocated for the creation of the fed and he was appointed to to its first board by president wilson my question to you how big of a problem is this revolving door and is it something that needs to be prevented. well there wouldn't be. the federal reserve was formed in the

war room to serve ranks. with the public is often told that it's there to provide full employment moment flash about that's just a cover story programs or it was there to make sure that the big banks not all the banks just a few big banks that nothing really goes wrong for them that substantially and that's what it's been doing ever since. now i want to talk about yon for a second do you think that recent fed policy has been beneficial to the economy kind of biryani what's come up with her everything that she's been saying. no i don't think it has been because it's created a moment's wobble and bonds and stocks and it commits the federal reserve to printing you know huge amounts of new dollars and the huge

amount of money printing alternately has to threaten the value of the doll act people's confidence in ns war reserve currency so i think it's really been detrimental to the economy and certainly been detrimental for savers especially retired people who don't like to risk their life savings and stock market because they don't know they'll live long enough to see a recovery should the market correct and they are dependent on interest income they've got no interest in coming down for a number of years so we follow suit that does not serve the american people or the economy it serves the banks that are too big to fail or the whole purpose of the policy is to keep the prices of the debt related securities or derivatives that debt related to remain to. explore high

when you buy bonds all debt crisis rise with the treasurer's and the mornings back securities this takes some of the toxic assets away from the big banks and it's it supports the balance sheets of the banks and makes them look a lot more solvent so that's the real purpose of the policy. now i kind of begs the question is the fed itself experiencing diminishing returns with its ongoing q.e. program and so it sounds like you might actually might think yes. well yes i think that the fed can get out of. their own way that if they stop it then we know bond prices will fall interest rates will rise and stock prices will collapse and there are natural crisis and the banks the big firings that they say that are too big to fail they will be in trouble again so the fed is kind of locked into this

policy and it really will have to continue or i think it will contain here until something happens to the dollar. because they keep turning more dollars more dollars so if you're someone holding doll of the nominated assets you're watching your dollar holdings be diluted at the tune of a thousand million a year so it's simple. the world may move away from. you know they're already starting to move away from using the doll it's the. currency for settling trade imbalances. the chinese currency has now moved up to number second but of course a dollar is still the major currency choose to several international trade accounts at some point. the demand for the dollar and that role. their clients substantially this can break the fed's control and bring the whole thing to

a yeah now you said that right now is that something happening to the dollar what do you think that something will be. well i think it's what we see happening you know the chinese announced recently that they do not need to accumulate any more foreign currency reserves which they made dolls so that's an indication that they see us to recycle their trade surpluses with the united states into the purchase treasury debt so that means if they stop doing that that the federal reserve to keep the bottom priced society will have to buy whole bottoms. and we say that china has an agreement japan and australia to settle their trade imbalances in their own currency so that new single ball and

we have the brics you know russia china brazil india south africa making a similar agreement that they will settle their trade imbalances between themselves in their own currencies so this means that the demand for doll as the world currency as a means of payment fog's and so in the current in market that should mean that the dollar's exchange rate falls relative to all the currencies. when all these mechanisms are already in place and while the use i would expect to see a long trouble for the value of the dall now that since united states is such an import dependent country. it means all that imports of things coming into the country would would then cost more so the inflation would be imported into the country for all the dollars loss which change the ground here and so then the american people would be faced with an all or relatively high level no one moment

that they're experiencing and inflation and there's no real economic policy solution for that. now mr roberts we have to go to a quick break but please stick around because after the break we will continue our discussion on q.e. fed policy or lack thereof and everything else that we could talk about with here also rachel kearns is joins me in today's big deal to talk about jurisdiction shopping just in time for the holidays and as we head to a quick break here's a look at some of today's closing numbers.

i got a quote for you. it's pretty tough. to wait substory. get this guy like me you're about done stead of working for the people most missions the beach or for joe right price vision. of the world. welcome back now economist author and all around bad insider paul craig roberts is with me now we're continuing our discussion now mr roberts i want to start off this this section by talking about former fed official andrew whose are now he published an op ed in the wall street journal and in his piece he claimed that the true

purpose of q.e. was to support the banks i want to ask you is there a way to conduct monetary policy without benefiting the banks or is this just in an editable outcome of conducting monetary policy. well yes you could conduct amount to policy with the benefit of the country in mind with the stability every want. the job and all but that's not what the thread was created do it was created by the big banks to serve them they have control over sense so what and to use our says is exactly what i've been saying it's just that it was the insider who originally implement the policy quantitative easing and when he saw what it was really for was to support the banks he resigned and that's very rare it shows that is all principle so i don't think that

without some kind of a revolution. that the power of the banks hold or could be broken i think it will change by. right now it seems that the current fed policy that encourages private debt by keeping interest rates so low and for such a long period of times does it bad policy shifting the power structure here in the us kind of giving more power to the banks in some way. well the financial crisis and the response to it has given a lot more power to the banks because of the consolidations. new order that we get in this program. that they let the small banks big banks private. so big banks get bigger and bigger and bigger and there's no longer an antitrust act and the argument used to be that competition requirement.

that you didn't terms get too large to get too big of a share of the market that they had to be able to compete against each other but now what they said is no you can't compete with global economy unless the banks are here. almost like office so i don't you know i just don't see you know all. the response to the one entry crisis has done anything except benefit byron's. now larry summers who recently implied during an i.m.f. gathering that it's not enough to merely give big banks interest free money more should be done for the banks and some are suggested instead of being paid interest on bank deposits people should be penalized for keeping their money in banks instead of spending it now i want to this for a long time and you would know if that's possible or not why doesn't the fed somehow come up with a scheme where charges the banks to spend less and opposed to the banks charging

people to spend. well but some has this really concocting is an excuse not only to continue or quantitative easing but to increase the sierra and the only way you could have you could get negative interest rates would be if the federal reserve purchased so many bombs that it was paying a premium for the bond over its face value or. in other words suppose it's one hundred dollars on by the fed it drives up the prices to one hundred two so it pays more for the ball and then the bond would ever be worth the maturity that's now you drive down the interest rates and the only and only known way that i that i can come up with so what or what this schema lera songs is a former u.s. treasury secretary and the bomber regime was the scheme is to provide an

a policy for you. for the federal reserve to purchase more all of the facts so many melbourne's that they're buying them at a premium over their face value now that would give you a negative interest rate so what would the people do they would take their money out of the banks. and do something else so the next part of the scheme is all well we don't let people have cashed in will there's only digital money and that where they can keep their money at home they can only keep it and bank accounts and they are we can penalize him for saving you see the change in economic policy that dominated the united states until supply siders came along in the 1980's while said that there's a natural right. of interest and that natural rate is the rate that makes savings

in investment equal at full employment and what summers is saying is that now the natural rate of interest is negative. wow well if this is an argument for the federal reserve to buy more bombs and to be such a huge demand in the bond market they'd pay premiums over the face value on it so it looks like summers thinks that quantitative easing must contender must increase and that he has concocted an economic policy argument to justify that that's what that's all about environment and now i want to ask you about savings the personal savings rate in the us today is currently two percentage points below the average long term how of the savings rate change under negative

interest rate policy can you explain that. well and you know summers argument which was very well explained by paul through them. they actually fame that people are saving more than investors are investing and therefore saving comes a dilution from spending so that consumers are spending money but if they would just spend everything everything will be fine but they're saving so and so the part they're saving comes away from spending well if the investors don't step in and borrow that saving and put it all back into the economy then the spending stream has shrunk and employment rises so this is the whole change views and so he is associated john maynard keynes it goes back to the pool the second world war

so what with with this view savings is bad. because it's reduction from spending and what's good is more spent more the better and so i think. in my home and this argument some recent crude maybe it's really. a closer for the continuation increase quantitative easing they want to support the banks even stronger. mr roberts that's all the time we have now but as always thank you for your insight and please come back on the show very soon i could ask you a million more questions so after in the near future that was called credit robert's economist and former assistant secretary to the treasury for economic policy under reagan time now for today's big deal.

rachel curtis is joining me now during the show to talk about a new shopping trend this year shopping trying to check this out and it's actually specifically for high net worth individuals to. get a christmas shopping might we suggest for you high net worth jurisdiction shopping yeah that's right now if you're part of that high net worth you might want to join the growing number of wealthy folks taking advantage of more favorable tax nations now according to a u.b.s. and well fed ex billionaire senses paul billionaire hot spot such as singapore switzerland and hong kong have emerged as favored destinations for the ultra rich due to factors like quality of life good education and low taxes now in these third countries their billionaire populations grew up locally by only thirty six thirty

four and twenty five percent respectively and the rest they came from afar now rachel i turn to you let's talk about this growing trend do you think it's fair let alone you know morally ok if you made your money here in the u.s. and america provided that place for you to make it free to get up and leave balance to greener tax pastures if you would think that everyone has the right to move where they want and i think it's important that we preserve that right but when it comes to the moral question that you ask for people who have benefited from anything in the united states from patent legislation to good roads to solid internet to anything like that certainly would make sense for for them to want to give back to a certain degree but i don't even think the fairness is just from the people who are running around to other countries like it's also for the people like i don't know presidential candidate mitt romney who are putting their money into tax havens so you could stay in the united states. and aspire to the highest office here and

still be trying to hide away a lot of your money so to me it's like if you're moving away at least you're admitting like listen i don't want to play this money you know it legally when i don't. and i appreciate consistency above all. else. like that now check this out numerous high profile ultra high net worth americans including facebook co-founder i believe is actually a brazilian by brazilian bribe earth but then he sought refuge in the united states so one could argue that he you know yeah it only got his money but i also like bodily integrity here in the united states and we're skipping out to singapore that we're talking out of border sovereign oh yeah we're talking about of course. relayed by andrew garfield on the social network for those who don't know if you factor it's. also songwriter and social i did nice rich and twenty year old. friend denise rich yes a close friend of the girl in front of i don't like her husband i believe it was hard to have your ex-husband. help with the fact that he got it all over the papers

today so is about getting. another one or a letter she ditched her passport last year as well all of these people are going to be there all over the place do you think there should be new laws put onto the books to prevent this man. because what with we can't force people to stay in the united states i mean if you're going to put any sort of measure on the books maybe something like a financial transaction tax something that gets money from people before they hit the road but even that i think is really controversial the details that have to be worked out a lot of people are saying we just need to make the tax code less complex and they're right if you look at the tax code it's ridiculous there's no way i could ever do my taxes on my own and i don't really have that many assets so i can't imagine those poor rich people and their accountants what they're having to deal with but you know i do think that when you look at tax code you can see their priorities in the same way that a total once said you can understand a country by its prison i think you can understand a country by its tax code and the united states right now is a country that's not really sure. it's priorities are we've just been using all

these kind of stopgap measures to our analogy of the year didn't we just hear that is not a big one from rachel herz is only years almost over since i was there and i know i made united in time always thank you that's all for now but you can see all segments featured in today's show on you tube but youtube dot com slash boom bust r t we also live here in from new subpoenas check out our facebook page at facebook dot com slash boom bust our teeth from all of us here boom bust thank you for watching we'll see you next time. big bucks but. we're going to do it still did you know the price is the only industry specifically mentioned in the constitution and. that's because

a free and open press is critical to our democracy schreck albums. in fact the single biggest threat facing our nation today is the corporate takeover of our government and i was proud to mco we've been hijacked by handful of transnational corporations that will profit by destroying what our polity harbors once built my job market and on this show we reveal the big picture of what's actually going on in the world we go beyond identifying the problem to try rational debate and a real discussion political issues they seem to find ready to join the movement then welcome to it.

today from supernatural to stab in the hearts for me columns i think cult is probably a fair term to apply to the supernatural fandom i think that anybody in the position of being adored by people whom they don't know has to be a little bit strange yeah you have to find that strange is it true that masses of angry new nasa did post an official tweet asking us to stop bothering as the astronauts on the international space station i don't know why they made such a big deal out of it i mean what are they doing up there that's so important plus one presumes i have you and her and other other individuals and it's all next on larry king now.